Elon Musk faces legal action from OpenAI, which claims he’s undermining the company to benefit his competing AI venture, xAI.
The battle for AI dominance just took a dramatic turn. OpenAI has officially countersued Elon Musk, accusing him of launching a “relentless campaign” to sabotage the company he helped co-found back in 2015.
Filed in a San Francisco federal court on April 9, 2025, the lawsuit claims Musk has spent the past year deploying legal attacks, viral smear campaigns, and even a fake $97.4 billion buyout bid to derail OpenAI’s growth—all while boosting his own AI venture, xAI.
According to OpenAI, Musk's motives are clear: undermine a rising competitor while promoting his own interests. The countersuit calls out a pattern of “bad-faith tactics,” including press attacks and demands for internal records, all orchestrated to shake investor confidence.
OpenAI called Musk’s $97.4 billion takeover bid a “sham,” pointing out that the offer amount referenced a fictional character—“974 Praf”—from a sci-fi novel by Iain M. Banks. This suggests the bid wasn’t serious and was meant to disrupt investor confidence!
Behind the legal drama lies a high-stakes power play: OpenAI is racing to secure a $40 billion fundraising round—a move critical to its transition into a for-profit entity. Musk has opposed this shift for years, claiming it betrays OpenAI’s nonprofit roots.
In a fiery public post on X (formerly Twitter), OpenAI accused Musk of trying to “seize control of innovation for personal gain.” Now, they’re asking the court to block any further interference—and they want a jury trial.
Set for spring 2026, the trial could reveal more about the behind-the-scenes tension between Musk and the company he once helped build. With billions in funding on the line and the future of AI leadership at stake, this is no longer just a legal fight—it’s a full-blown tech war, and we are here to cover all of it for you!
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